Saudi Aramco and ConocoPhillips on Friday announced they have approved continued funding for the development of the Yanbu Export Refinery Project.
The Saudi Aramco and ConocoPhillips project would construct a grassroots, 400,000 barrel-per-day, full-conversion refinery in the Yanbu Industrial City, in The Kingdom of Saudi Arabia. The refinery is being designed to process Arabian heavy crude which would be supplied by Saudi Aramco. The refinery would produce high-quality, ultra-low sulfur refined products that will meet current and future product specifications. Saudi Aramco and ConocoPhillips would each be responsible for marketing one half of the refinery's production. The refinery is targeted to start up in 2013.
The companies have completed the initial evaluation and front end engineering and design (FEED) outlined in the May 2006 Memorandum of Understanding (MOU). The next phase will include the solicitation of bids, commitment of long lead items and site preparation work.
"We're pleased to be entering the next stage of development for the Yanbu export refinery project, together with our partner, ConocoPhillips," said Khalid G. Al-Buainain, Saudi Aramco senior vice president for Refining, Marketing & International. "This facility will bolster the Kingdom's refining capacity, and provide additional quantities of high quality refined products for global and domestic markets. This partnership is important to Saudi Aramco, and this initiative is an important aspect of our company's expanding downstream business portfolio," he added.
"ConocoPhillips is pleased to continue working with Saudi Aramco towards adding needed capacity to the international refining system," said Jim Gallogly, ConocoPhillips executive vice president of refining, marketing, and transportation. "The Yanbu project fits well with the company's overall strategy to invest in projects that expand our global refining presence and provide significant new supplies of clean products in an environmentally sound manner."
ConocoPhillips and Saudi Aramco are planning to form a joint-venture company, with equal interests to own and operate the proposed new refinery. Subject to required regulatory approvals, the parties plan to offer an interest in the refinery to the Saudi public.